Railways to boost coal mine connectivity with Rs 40 bn investment

As part of its initiative to boost railway connectivity, the railway ministry plans to spend about Rs 4,000 crore to upgrade rail connectivity to coal mines.

The investment, once materialises, would boost fuel supplies to power projects. Many power projects are suffering insufficient coal supply because of lack of rail connectivity to bring fuel from the coal mines to their project site. These logistical issues are also impacting overall electricity generation.

The Rs 4,000 crore investment is part of the Railways' initiative to invest up to Rs 9,000 crore for providing connectivity to ports, coal mines and iron ore mines.

The government addressed the specific concerns of private investors through the recently released participative policy enabling partnership with ports, large mines, industry and investors, Railway Minister Pawan Kumar Bansal said while presenting the Railway Budget 2013-14.

The models seek to create a win-win situation by ensuring payback of investment mainly through freight apportionment. The initiative was welcomed by Coal Minister Sriprakash Jaiswal.